As part of the engagement services, Inrate analysts hold regular dialogues on material sustainability issues identified by the "Responsible Shareholder Group" (RSG). The aim of the dialogue is to ensure that companies remain competitive and create long-term value by making them aware of their positive and negative impacts on the environment and society and of the importance of governance. Inrate is also in contact with companies about current developments such as controversies.
On the one hand, scope 3 emissions are one of the topics addressed in the periodic exchange with Lonza. In 2018, Lonza first dealt with scope 3 emissions in their sustainability report. Up to now, the various categories within those emissions have not yet been reported. The scope 3 emissions will therefore remain an important part of our next regular engagement.
On the other hand, exceptional situations require more timely answers. This was the case with the nitrous oxide emissions from Lonza’s niacin production at their Visp site. Lonza exhibited openness and willingness to talk to Inrate. The assessment of controversies by Inrate is based on the severity and results in a deduction of the Inrate ESG Impact Rating. This is also the case with Lonza. By putting the catalytic converter into operation, the controversy will be re-evaluated and may again in the future lead to a change in the overall rating of Lonza.